RVLV - Better Stock Buy: Gap vs. Revolve Group
2023-08-11 05:41:00 ET
Brick-and-mortar fashion retailer Gap 's (NYSE: GPS) stock is back in fashion with investors, up 24% in the past three months, even though sales from its clothing line are still underwhelming. At the same time, e-commerce-based fashion retailer Revolve Group 's (NYSE: RVLV) stock is out of favor, down 4.4% over the same three months, as it faces its own struggles.
Which one of these fashion retailers is the better opportunity?
Gap's business has been in a slump for years now. It was the king of American fashion throughout the 1990s, but it has been "out of fashion" as a prime retailer for roughly two decades. Gap has had some highs and lows since then and it's been through a string of CEOs in efforts to revive the business without much success. Sales levels in 2022 were almost exactly what they were literally 20 years ago, and profits have evaporated.
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Better Stock Buy: Gap vs. Revolve Group